Ask most people what it takes to build wealth from the share market and you'll often hear talk of six-figure windfalls or well-timed trades. But the truth is, you don't need a huge upfront investment or perfect timing — you just need consistency, time, and a focus on quality.
In fact, investing just $500 a month into high-quality ASX shares could be enough to build serious wealth over time. And history backs that up.
Compounding with ASX shares
Let's start with the numbers. If you invest $500 each month and earn a long-term average return of 10% per annum, your portfolio could grow to over $1 million in approximately 30 years.
That 10% figure isn't pulled from thin air. It is roughly in line with the long-term historical average return of share markets, including dividends. Of course, past performance is no guarantee of future results.
And it is worth remembering that the ride won't be smooth.
Markets don't move in a straight line. There will be volatility. There will be corrections. But that's where dollar-cost averaging comes into its own. When prices fall, your $500 buys more shares. And vice versa when it rises.
The key? Stick with it. Over time, those monthly investments start to compound — and that's where the magic happens.
What you buy matters
While consistency is important, what you invest in matters just as much.
This is where quality comes in. Legendary investor Warren Buffett has long championed the idea of investing in businesses with sustainable competitive advantages. These are often referred to as economic moats.
These are companies that dominate their industries, maintain pricing power, and have the ability to grow earnings consistently over time.
On the ASX, that could mean global biotech leader CSL Ltd (ASX: CSL), world-class logistics software platform provider WiseTech Global Ltd (ASX: WTC), or digital real estate leader REA Group Ltd (ASX: REA).
These aren't fly-by-night stocks — they are businesses built to last. And buying shares in companies like these, month after month, is a proven way to build wealth over the long haul.
Trust the process
There will be times when markets fall and your portfolio dips. That's normal. The investors who come out ahead aren't the ones who panic — they're the ones who stay focused on the big picture.
By investing $500 a month, focusing on quality, and sticking with it through the market's inevitable ups and downs, you give yourself the best chance of achieving life-changing financial outcomes over time.
It is not about luck. It is not about timing the market. It is about owning great businesses and giving them time to grow.
Foolish takeaway
Building wealth on the ASX doesn't require genius. It requires discipline, patience, and belief in the power of long-term investing.
If you can commit to investing $500 a month into quality ASX shares — and let compounding do the rest — you might just wake up in 20 or 30 years and realise that your simple plan turned into something special.
